Anglo and IL&P may be prime bidders for NCB stockbrokers

PROSPECTIVE buyers of NCB stockbrokers are keeping their cards very close to their chest as owners Ulster Bank prepare to sell off the subsidiary for between €25 and €30 million.

For six months the Dublin stock broking community has been anticipating disposal of NCB by Ulster Bank, owned by the Royal Bank of Scotland.

Ulster Bank has already exited stock broking in Northern Ireland following the sale of the region's biggest broker, Cunningham Coates, to London-based NCL in July.

Yesterday, Ulster Bank refused to comment on the proposed sale of NCB on the basis that it does not comment on speculation.

Prospective domestic buyers include Irish Life and Permanent (IL&P) and Anglo Irish Bank but neither will be charging down the door to buy the stockbroking house founded by Dermot Desmond.

Anglo is the least likely of the pair to pick up NCB though it would dearly love to get its hands on NCB's private clients.

Like Anglo, IL&P will definitely give the memorandum of information on the sale the once-over as NCB appears to be a neater fit with the former building society.

While IL&P is now firmly focussed on the Irish market, its eye is on the retail end of the finance sector. This might influence the firm when it considers adding a stock broking arm that services the institutional sector. Even if some synergies were possible with the Irish Life arm, these would never be enough on their own to justify the investment.

Anglo or IL&P will have to alter their strategic positions to take NCB in and while Anglo is very unlikely to do so, IL&P will give it a serious examination.